RBNZ fine-tunes low-equity loan restriction regime, two-week notice stands

Tue, 13 Aug 2013

By Paul McBeth Aug 13 (BusinessDesk) - The Reserve Bank has fine-tuned the regime to restrict home-lending for borrowers with small deposits, but reiterated that banks will get just two weeks’ notice before any new rules are imposed. The central bank has settled on a ‘speed limit’ approach to proposed restrictions on high loan-to-value ratio mortgage lending, effectively reducing the volume of low-equity lending banks can offer in a given period rather than banning it outright. In response to the consultation period, the RBNZ will give len...

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